Archive for August 2022

Perfectly timing the stock market is a losing proposition and will likely result in failure. However, there are investors who feel that market timing is helpful and therefore hedge their bets based on their forecasting models. If those bets are correct, then there is a lot of money that can be made. But on the…

The Sharpe Ratio is essentially a measure of risk adjusted return which measures investment return per unit of risk. Presumably, the higher the Sharpe Ratio the better. Many quantitative investment firms require potential portfolio managers (PMs) to be able to demonstrate their ability to build investment portfolios with Sharpe Ratios exceeding a certain value. Again,…

As investors read the daily financial news and listen to their favorite investment gurus on television or the internet, who should they trust? All can agree that the stock market has risen over time at an average rate of about 10% per year and that likely will continue over the long term. Unfortunately, many investors…

If you have a financial adviser, then you probably have a way of determining if your adviser is a good fit or not. Usually, investment track-record and trust are two of the biggest factors when it comes to determining whether or not you are happy with your adviser. Being a financial adviser is essentially a…

With back-to-back quarterly declines in GDP, we are currently in a recession based on the technical definition. GDP growth for the first two quarters of 2022 was -1.6% (Q1) and -0.9% (Q2). Going beyond the technical definition of a recession, it is debatable as to whether we are in a recession primarily because of the…